Why Is the Auditor More Concerned with the Risk of Overreliance

question 21

Multiple Choice

Why is the auditor more concerned with the risk of overreliance rather than the risk of underreliance?

• A)The risk of underreliance is not a type of sampling risk.
• B)The risk of overreliance exposes the auditor to an efficiency loss.
• C)The risk of overreliance may result in the auditor failing to perform sufficient substantive procedures.
• D)The risk of overreliance cannot be measured by the auditor during the sampling process.

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Definitions:

Personal Selling

A marketing strategy where sales are made one-on-one with the consumer, typically through face-to-face meetings.

Face-To-Face Encounter

Direct interaction between two individuals or parties, typically in a business or service context, to communicate or complete a transaction.

Purchase Decision

The final choice made by a consumer or organization regarding the buying of a product or service after considering options and evaluating alternatives.

Promotional Mix

A blend of marketing tools used to effectively communicate with the target audience and promote a product or service.